The back tests on Gomega are very good, however the live results are even better. I’m not really much of a believer in back tests, mostly due to the fact that the amount of data available for the EA to work with, is tiny at only around 1% to 2% of the original live data ticks. And even when using the 1 minute time frame as the data source, each tick is an average of the 50 to 100 ticks that would have existed in real time. In other words, back tests are poor facsimiles of live trading.
So how did Gomega GBPJPY do in the back test? The test was run across the same time period that we have live results for. Which start from Oct 5th, 2008 thru to April 10th, 2009. Starting with an account size of $5000, the Gomega GBPJPY back test finished with a closing balance of $8174 or a gain of 63%. This compares very well with the live results from Gomega clients. One client began live trading on September 2nd 2008 with a starting balance $10,000. And by April 6, 2009, the balance stood at $19,909.24. A gain of 99% in just 7 months. You can see Andreas, from Switzerland, talks about his Gomega settings for trading the Pound Yen. Sean Hummel ran a $5000 demo account over the same period which reached a closing balance of $14,608.67 by April 3, which is a gain of 192%. And another client traded a live money account starting with $5000 beginning on October 5th, 2005 and by April 10th it had reached $12,811.01 or a gain of 156%.
Here I’ve taken the chart from the back test and superimposed it over the live result charts (Sean, Greg). I’ve color coded the balance curves to make it easier to compare the results. The blue line is the live money account, the green line is the forward demo test and the orange is the from the back test.
You can read more on the Gomega GBP JPY at GOmega Pound Yen Review.
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